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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I've been a landlord for 20+ years and the 1% have never applied to the DC metro area.[/quote]

Correct. This area is too expensive. This is the wrong place for rental investments. Most investors here rely heavily on home appreciations to make money.[/quote]

Perhaps, but there’s another rule that it’s stupid to have rental properties that are hours away from where you live. So what should people who live here do?[/quote]

our rentals rents for around $1850/month and its current assess values are around $350k...so around 6% gross ROI.  We collected these rentals around 2011-2013 for around $250-300k.
[b]Just because the 1% rule doesn't apply, it doesn't mean RE is not a decent stable investment[/b]...[/quote]

But it means you can earn more money investing elsewhere.  Rental properties are a lot of work for something with a suboptimal return!  [/quote]

Considering we put down about 70k per property, or around 25%.[b]..I think it's decent return...[/b]also, we have a large amount already in the stock market and figure diversification is a sound strategy.[/quote]

It’s a horrible return.  You’d have 4x as much money if you’d invested in stocks [/quote]

How so?

So the rental was purchased for $250k in 2012 and I put down $70k of my own money.  Tenant's rent has been covering/paying for the mortgage.   It's now worth conservatively about $350k, or an $100k increase in 6 years...remember I only put in $70k of my own money so that's like 142% ROI.

Has your stock portfolio done better?

[/quote]

The reason this is a bad investment is because you’d barely have a return except for the appreciation.  There’s a decent chance your property won’t appreciate at the same rate over the next few years.  You don’t want a rental property that solely relies on appreciation. You want to invest your 70k and have a monthly income from it. [/quote]

By the same token, there's a decent chance the market won't be appreciate at the same rate over the next few years neither.[/quote]

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